Investor Presentation May 2020 NYSE: DVN devonenergy.com
Defining Devon Premier multi-basin oil portfolio Acreage resides in top U.S. resource plays KEY DEVON ATTRIBUTES Achieving TOP-TIER operating results OIL WEIGHTED: 82% of revenue (Q1 2020) Deep inventory of repeatable…
Significant Financial Strength & Liquidity Significant liquidity with no near-term debt maturities Balance sheet strength provides competitive advantage Outstanding debt maturities (MM) Cumulative % of debt maturing as a % of total…
Hedging Program Protects Cash Flow ATTRACTIVE HEDGE POSITION PROTECTS CASH FLOW Disciplined hedging strategy protects cash flow Combination of swaps & costless collars Q2-Q4 2020 1H 2021 (% of oil volumes hedged) (% of oil volumes…
Strategic Asset Sales Enhance Financial Strength CANADIAN HEAVY OIL Strategic transactions ENHANCE competitive position (COMPLETED EXIT FROM CANADA) Proceeds: CAD 3.8 billion Closed: Q2 2019 Barnett Shale sold for up to 830 million…
Our Approach to the Current Environment TOP PRIORITIES IN CURRENT MARKET Preserve liquidity and financial flexibility Revenue PROTECTED by hedging program 1 1 Protect financial strength Positioned to generate net cash inflows Continue…
Tailoring Capital Activity to Current Environment Recalibrating capital activity to protect liquidity REVISED 2020 CAPITAL PLAN 2020e E&P capital (B) E&P CAPITAL NEW WELLS ONLINE ESTIMATED DUCs 1.8 Billion (MM) (Operated) (At YE…
Capital Efficiencies Continue to Accelerate Delaware Basin capital efficiencies accelerate Wolfcamp on track to achieve significant cost savings Drilled and completed feet per day (Wolfcamp formation) Drilling and completion costs (MM)…
Efficiencies Drive Maintenance Capital Improvements Targeting a 20% IMPROVEMENT in maintenance capital requirements by 2021 KEY Maintenance capital target driven by Delaware Basin efficiencies & supply chain pricing TAKEAWAYS Year-end…
Managing Production to Market Conditions Adjusting activity in Q2 due to market conditions Reducing to 8 operated rigs by mid-year DYNAMICALLY Plan to exit Q2 with 65% less frac crews (vs. Q1 avg.) MANAGING RESTRICTING flowback on…
Marketing Agreements Provide Flow Assurance Plan to flow barrels if pricing is above VARIABLE COSTS KEY Arrangements provide strong flow assurance KEY MARKETING TERMS & AGREEMENTS MESSAGES Majority of oil sold backstopped by firm…
Cost Structure Continues to Improve KEY METRICS Q1 2020 RESULTS Reducing 2020 cash cost expectations Cash costs ( in billions) LEASE OPERATING & GP&T EXPENSES 8.07 -9% VS Q1 19 1.90 2020 SAVINGS 250 TARGET MILLION PRODUCTION…
Positioned to Generate Net Cash Inflows in 2020 2020 operating plan positioned to generate net cash inflows at ultra-low pricing ( in billions) 3.2 B 1.0 B GENERATING Cash flow enhanced by Barnett divestiture DIVEST (2) PROCEEDS…
ESG Performance Remains a Top Priority ENVIRONMENT SOCIAL & SAFETY GOVERNANCE On track to meet our methane intensity Provided STEM resources across our ESG metrics incorporated in target of 0.28% or lower by 2025 communities,…
Delaware Basin World-Class Oil Resource Opportunity Q1 production averaged 162 MBOED WOLFCAMP PROGRAM HEADLINES Q1 RESULTS THISTLE/GAUCHO 32 new wells brought online 2ND BONE SPRING SUCCESSFUL INFILL Average IP30: 2,500 BOED SWEET…
Powder River Basin Advancing Niobrara Appraisal POWDER RIVER BASIN ACTIVITY Q1 production averaged 29 MBOED (74% oil) REVISED CAPITAL Delivered HIGHEST MARGINS in portfolio (+30% vs. DVN avg.) 14 new wells online in quarter (Avg.…
Eagle Ford Expanding Resource Opportunity EAGLE FORD ACTIVITY Q1 production averaged 50 MBOED (53% oil) Net production increased 11% vs. prior quarter SUCCESSFUL EAGLE FORD DEVELOPMENT PROJECT 2ND REDEVELOPMENT Capital investment:…
Anadarko Basin Optimizing Base Production Results ANADARKO BASIN ACTIVITY Base production efforts improve decline profile Q1 net production: 98 MBOED (54% liquids) REDUCING CAPITAL INFILL DEVELOPMENT 95% (ACTIVITY NOT RELATED TO…
Why Own Devon Premier multi-basin oil portfolio Acreage resides in top U.S. resource plays KEY DEVON ATTRIBUTES Achieving TOP-TIER operating results OIL WEIGHTED: 82% of revenue (Q1 2020) Deep inventory of repeatable opportunities…
Asset-Level Modeling Stats Q1 2020 - ASSET DETAIL DEVON DELAWARE POWDER RIVER EAGLE FORD ANADARKO OTHER PRODUCTION Oil (MBbl/d) 163 84 21 26 24 8 NGL (MBbl/d) 80 37 3 9 30 1 Gas (MMcf/d) 634 244 29 86 272 3 Total (MBoe/d) 348 162 29 50…
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